Denied because of Non-taxable income

What is the name of your state? GA

My daughter was approved for SSI. She is now three. They denied her because of my husbands income. He is active duty National Guard and receives BAH, Basic Allowance for Housing. They said this put his income over the level of approval even though it is non-taxable income.

Should we have fought this decision?

According to the IRS its not included as income for the EIC anymore why does SSA include it as income?

SSI is considered welfare and Welfare have different guidelines. They count ALL income wether it's taxable or not.